Power and water prices set to rise in double slug

Treasurer Delia Lawrie says that, combined, the carbon tax and CPI indexation will increase the average household utilities bill by $4.32 a week.

ABC; Barry Doyle

The Northern Territory Government says average household utilities prices are set to rise by $225 a year because of the Federal Government's carbon tax costs and an increase in the consumer price index.

Modelling released by Power and Water shows the average power bill will go up by $2.61 because of the carbon tax.

In addition, PowerWater's annual CPI-linked electricity, water and sewerage cost will rise by 2.8%.

Combined, the two are forecast to increase the average household bill by $4.32 a week.

Territory Treasurer Delia Lawrie says the new costs will come into effect from July 1.

Ms Lawrie says the Commonwealth will be providing compensation through tax concessions to cover the carbon price increase.

"Territory households and small businesses already have the second-lowest power prices in Australia, due to a $63 million subsidy from the Territory Government," she said.

Ms Lawrie says the Federal Government has indicated that the average Australia household will receive more than $10 a week in carbon price tax concessions.

"Each person can go to the Commonwealth's website see what their individual circumstances in that household are," she said.

"The compensation varies on income and numbers of dependents."

For small businesses, the average weekly cost increase will be $15.80 from the carbon price and $13.38 through PowerWater charges, an average combined rise of $29.18.

Small businesses will be eligible for the Commonwealth's instant asset write-off scheme, which is linked to the carbon price.

Ms Lawrie says the Territory Government will continue to oppose cuts to the diesel fuel rebate and increases to the aviation fuel excise.

She says any changes in these areas would adversely affect regional Australia, which already has to cope with higher fuel and freight costs.

The Country Liberals say the Territory Government should release a breakdown of its calculations on how much the Commonwealth's carbon tax will cost per household.

Opposition leader Terry Mills says it is going to hurt family and industry, and he is certain costs will be much higher then those the Treasurer is claiming.

"I honestly do not believe the figures that Delia Lawrie has presented to try and sell this," he said.